Re: Synthetic Control Method (Abadie et al. 2010)
Link to the original paper here.
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name:
log: ~\myReplications\synthetic-control\synthdid.smcl
log type: smcl
opened on: 16 Dec 2018, 18:24:07
*** Replication of Synthetic Control method - the last graphs 4-7
*** 1. Load dataset, tsset and loop through all units and store the results of synth using the keep option.
. sysuse smoking, clear
(Tobacco Sales in 39 US States)
. tsset state year
panel variable: state (strongly balanced)
time variable: year, 1970 to 2000
delta: 1 unit
. forval i=1/39{
qui synth cigsale retprice cigsale(1988) cigsale(1980) cigsale(1975), ///
xperiod(1980(1)1988) trunit(`i') trperiod(1989) keep(synth_`i', replace)
}
*** 2. Quitely loop through all saved datasets and create the relevant variables (years and treatment effects). Drop missing observations.
. qui forval i=1/39{
use synth_`i', clear
rename _time years
gen tr_effect_`i' = _Y_treated - _Y_synthetic
keep years tr_effect_`i'
drop if missing(years)
save synth_`i', replace
}
*** 3. Load the first dataset from step 2 and merge with the rest of datasets.
. use synth_1, clear
(Tobacco Sales in 39 US States)
. forval i=2/39{
qui merge 1:1 year using synth_`i', nogenerate
label var tr_effect_`i' "tr_effect_`i'"
}
** Rename tr_effect_i to tte_j by ranking based on MSPE scores.
. qui rename tr_effect_17 tte_1
. (...)
*** 4. Plot
**Figure 4 (38 control states)
. set scheme s1mono
. local lp
. forval i=1/38 {
local lp `lp' line tte_`i' years, lcolor(gs12) || }
twoway `lp' || line tte_3 years, lcolor(black) lwidth(medium) text(-40 1984 "Passage of Proposition 99 --->", size(*0.75)) ///
legend(off) yline(0, lcolor(black) lwidth(thick) lpattern(dash)) xline(1989, lwidth(medium) lpattern(dash)) ///
caption(Re: Figure 4. Per-cap cig sales gaps in California & placebo gaps in 38 control states.)
. graph export synth38.png, replace
(file synth38.png written in PNG format)
*
**Figure 5 (34 control states)
. drop tte_35 tte_36 tte_37 tte_38 tte_39
. local lp
. forval i=1/34 {
local lp `lp' line tte_`i' years, lcolor(gs12) ||
}
. twoway `lp' || line tte_3 years, lcolor(black) lwidth(medium) text(-40 1984 "Passage of Proposition 99 --->", size(*0.75)) ///
legend(off) yline(0, lcolor(black) lwidth(thick) lpattern(dash)) xline(1989, lwidth(medium) lpattern(dash)) ///
caption(Re: Figure 5. Per-cap cig sales gaps in California & placebo gaps in 34 control states)
. graph export synth34.png, replace
(file synth34.png written in PNG format)
*
**Figure 6 (29 control states)
. drop tte_30 tte_31 tte_32 tte_33 tte_34
. local lp
. forval i=1/29 {
local lp `lp' line tte_`i' years, lcolor(gs12) ||
}
. twoway `lp' || line tte_3 years, lcolor(black) lwidth(medium) text(-40 1984 "Passage of Proposition 99 --->", size(*0.75)) ///
legend(off) yline(0, lcolor(black) lwidth(thick) lpattern(dash)) xline(1989, lwidth(medium) lpattern(dash)) ///
caption(Re: Figure 6. Per-cap cig sales gaps in California & placebo gaps in 29 control states)
. graph export synth30.png, replace
(file synth30.png written in PNG format)
*
**Figure 7 (19 control states)
. drop tte_20 tte_21 tte_22 tte_25 tte_23 tte_24 tte_26 tte_27 tte_28
. local lp
. forval i=1/19 {
local lp `lp' line tte_`i' years, lcolor(gs12) ||
}
. twoway `lp' || line tte_3 years, lcolor(black) lwidth(medium) text(-40 1984 "Passage of Proposition 99 --->", size(*0.75)) ///
legend(off) yline(0, lcolor(black) lwidth(thick) lpattern(dash)) xline(1989, lwidth(medium) lpattern(dash)) ///
caption(Re: Figure 7. Per-cap cig sales gaps in California & placebo gaps in 19 control states)
. graph export synth19.png, replace
(file synth19.png written in PNG format)
**
. log close
name:
log: ~\myReplications\synthetic-control\synthdid.smcl
log type: smcl
closed on: 16 Dec 2018, 18:24:21
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